MIB Nears 40,400 After ECB Rate Cut; MPS Leads the Rally

(Alliance News) - On Thursday, major European stock indices closed in positive territory--with the exception of Paris--after the European Central Bank announced a 25-basis-point cut to its three key interest rates. The decision comes in response to updated inflation forecasts, underlying inflation trends, and the effectiveness of monetary policy transmission.

Inflation is now approaching the medium-term target of 2%. According to new projections from the Eurosystem staff, headline inflation is expected to reach 2.0% in 2025, 1.6% in 2026, and return to 2.0% in 2027. The downward revisions reflect lower energy prices and the euro's appreciation. Core inflation is forecast to remain at 2.4% in 2025 and 1.9% over the subsequent two years.

As a result, the FTSE MIB closed up 0.7% at 40,379.29, the Mid-Cap gained 0.9% to 54,937.56, the Small-Cap rose 0.3% to 31,614.37, while the Italy Growth index slipped 0.1% to 8,078.31.

Across Europe, London's FTSE 100 ended up 0.1%, Frankfurt's DAX 40 added 0.2%, while Paris's CAC 40 fell by 0.2%.

Back in Milan, the top performer on the blue-chip FTSE MIB was Banca Monte dei Paschi di Siena, advancing 3.2%.

Buzzi and Banca Popolare di Sondrio also made gains, up 2.9% and 3.0%, respectively.

BPER Banca climbed 2.3%. On Wednesday, the bank announced it had received Consob's approval for its voluntary public exchange offer for all ordinary shares of Banca Popolare di Sondrio.

For each tendered share, BPER Banca will offer newly issued shares at a ratio of 1.45 BPER shares for every Popolare di Sondrio share. The new shares will have no nominal value, carry full rights, and share the same characteristics as those already listed.

In further banking sector moves, UniCredit rose 2.2% after confirming the European Commission would not launch an in-depth investigation into its attempted acquisition of Banco BPM, which itself rose 2.1%.

This means the deal will be authorized under the EU Foreign Subsidies Regulation. UniCredit announced a EUR10.1 billion offer in November.

Poste Italiane--up 0.6%--announced the launch of the fourth tranche of its share buyback program today.

During the first tranche, the company bought back 1.2 million shares; in the second, it acquired 710,800 shares; and in the third, it purchased 688,942 shares.

Under the fourth tranche, no more than 933,589 shares--equivalent to 0.1% of its share capital--may be repurchased, for a total outlay of EUR22.3 million.

Among the decliners were Campari, Moncler, and Brunello Cucinelli, down between 4.7% and 2.7%. Italgas also slipped 1.5%.

In the midcap segment, following the banks, Italian utilities are also entering a phase of increased competition, prompting operators to expand their customer bases or integrate their supply chains.

Notably, Eni's Plenitude unit submitted a binding offer to acquire the entire share capital of Acea Energia, the retail arm of Acea, which serves around 1.4 million customers.

The deal, valued at approximately EUR600 million, will be reviewed by Acea's board next week, with a possible closing in 2026 when the regulated market is set to be fully liberalized.

Acea ended down 0.9%, while Eni on the MIB edged up 0.2%.

Fincantieri closed 5.4% higher. On Tuesday, the company announced that its Norwegian subsidiary Vard had delivered two of the world's first vessels with cyber notation.

These are the Commissioning Service Operation Vessels "Grampian Kestrel" and "Purus Chinook," built for North Star and Purus, respectively, the company said in a statement.

On the Small-Cap index, Immsi fell 3.4%. On Wednesday, the company announced that its subsidiary Intermarine had signed a framework agreement with the Directorate of Naval Armaments at the Ministry of Defence, worth a total of EUR60.0 million over four years.

The agreement covers the maintenance of operational capabilities for the Italian Navy's minehunter fleet, ahead of the entry into service of new advanced-generation units from 2029.

Banca Profilo slipped 0.3% after announcing that its newly appointed board had reached an agreement with Fabio Candeli.

The deal provides for Candeli to continue as general manager with full executive powers, with a mutually agreed termination of employment--barring early termination--in place at the end of the current year, with compensation in line with existing remuneration policies.

Among the gainers, Fiera Milano--up 5.2%--announced Wednesday the launch of its buyback program of up to EUR1.2 million.

Under the plan, which will conclude within a maximum of 18 months, the company may buy back up to 200,000 ordinary shares.

Among small and medium-sized enterprises, Execus dropped 1.5% after announcing the subscription of 750,000 new ordinary shares from its reserved capital increase approved at the end of May, for a total value of EUR960,000, equaling 96% of the maximum planned amount of EUR1 million.

The new shares, issued at EUR1.28 each, are intended to support the group's growth plans and will have the same characteristics as those already in circulation. The final subscription deadline is set for July 31.

Eles--down 0.9%--announced Wednesday the signing of a five-year framework agreement with a global leader in automated test equipment supply.

The deal provides for Eles to design and supply a new automated Burn-In Test platform for large-scale production of High-Performance Computing devices.

Simone slipped 0.6%. On Wednesday, the company announced it had signed a preliminary agreement to acquire 51% of the share capital of a newco into which--via a spin-off from Calamus Sas di Canton e C.--the business related to the "Topipittori" brand will be transferred.

The latter is a publishing house specializing in illustrated children's books, which posted an average turnover of EUR1.3 million over 2022-2024.

In New York, the Dow was up 0.2% at 42,500.53, the Nasdaq gained 0.5% to 19,549.23, and the S&P 500 rose 0.2% to 5,985.16.

In currencies, the euro was trading at USD1.1456, up from USD1.1423 on Wednesday evening, while the pound was at USD1.3594 compared to USD1.3563 the previous evening.

In commodities, Brent crude traded at USD65.58 per barrel, up from USD64.70, while gold stood at USD3,395.40 an ounce, up from USD3,372.62 the previous evening.

Friday's macroeconomic calendar opens at 01:30 CEST with Japanese household spending data.

At 08:00 CEST, the UK Halifax house price index is due, followed at the same time by German export data, industrial production, and the trade balance.

Forty-five minutes later, France will release its industrial production and trade balance figures.

At 10:30 CEST, ECB President Christine Lagarde will deliver a speech, while at 11:00 CEST, Eurozone GDP, retail sales, and employment data will be published.

Across the Atlantic, US unemployment data is due at 14:30 CEST.

No major announcements are expected from companies listed on Piazza Affari.

By Claudia Cavaliere, Alliance News reporter

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